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DSDVY vs. OMAB: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Transportation - Services stocks have likely encountered both DSV (DSDVY - Free Report) and Grupo Aeroportuario del Centro Norte (OMAB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both DSV and Grupo Aeroportuario del Centro Norte have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

DSDVY currently has a forward P/E ratio of 14.85, while OMAB has a forward P/E of 18.65. We also note that DSDVY has a PEG ratio of 1.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OMAB currently has a PEG ratio of 6.22.

Another notable valuation metric for DSDVY is its P/B ratio of 3.21. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, OMAB has a P/B of 7.84.

These metrics, and several others, help DSDVY earn a Value grade of B, while OMAB has been given a Value grade of C.

Both DSDVY and OMAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DSDVY is the superior value option right now.


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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) - free report >>

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